Question

Which of the following statements are correct?

1. a. The CAG audits the accounts of all government companies as per the provisions of the Companies Act.
2. b. The CAG can inspect any office or department subject to their audit and call for any records or documents.
3. c. The CAG compiles and maintains the accounts of the Central Government.
4. d. The CAG acts as a guide, friend, and philosopher to the Public Accounts Committee of Parliament.

• A. i, ii, iv
• B. ii, iv
• C. All
• D. i, iv

Answer 1

Answer:

A. i, ii, iv

Comptroller and Auditor General of India (CAG)

• The CAG is an authority, under The Constitution of India, who audits all receipts and expenditures of the Government of India and the state governments, including those of bodies and authorities substantially financed by the Union or State revenues.
• The CAG also audits the accounts of any body or authority when required by the provisions of any law or rules made thereunder by Parliament.
• CAG is the head of the Indian Audit and Accounts Department.
• CAG is appointed by the President of India by a warrant under his hand and seal and shall only be removed from office in like manner and on the like grounds as a Judge of the Supreme Court.
• The CAG is not eligible for appointment to any office under the Government of India or the Government of any State upon ceasing to hold office.
• CAG submits audit reports to the President, who gets them laid before each House of Parliament.
• The Public Accounts Committee (PAC) of Parliament scrutinizes the reports of the CAG. The CAG acts as a guide, friend, and philosopher to the PAC.
• Statement a: The CAG audits the accounts of government companies as per the Companies Act, 1956 (and subsequent amendments). This is mandated under Section 617 of the Companies Act.
• Statement b: The CAG has the authority to inspect any office or department under their audit jurisdiction and can demand any records or documents necessary for the audit process. This power is crucial for effective auditing.
• Statement c: The responsibility of compiling and maintaining the accounts of the Central Government lies with the Controller General of Accounts (CGA) in the Ministry of Finance, not the CAG. The CAG's role is to audit these accounts after they are prepared.
• Statement d: The CAG plays a vital role in supporting the Public Accounts Committee (PAC) by providing detailed audit reports and clarifications, thereby assisting the committee in its oversight function.